S. Korea's exports up 54 pc on strong chip shipments
Seoul, July 13
South Korea's exports jumped 53.9 per cent from a year earlier in the first 10 days of July, data showed on Monday, on the back of strong outbound shipments of semiconductor products.
Outbound shipments reached US$29.8 billion in the July 1-10 period, compared with $19.3 billion tallied in the same period last year, according to the data from the Korea Customs Service, reports Yonhap news agency.
It marked the highest figure for any 10-day period compiled by the customs agency. The previous record was $28.6 billion, posted in June.
Imports went up 17.4 percent on-year to $23.5 billion over the cited period, resulting in a trade surplus of $6.4 billion, the latest findings showed.
By sector, exports of semiconductors nearly tripled to $11.2 billion, while those of automobiles rose 5.7 percent to $1.89 billion.
Outbound shipments of petroleum products and ships advanced 22.7 percent and 75.1 percent, respectively, to $1.75 billion and $1.54 billion.
By destination, exports to China surged 88.7 percent to $7 billion, while those to the United States rose 43.2 percent to $4.91 billion.
As of Friday, cumulative exports this year totalled $526.1 billion, up 48.6 percent from a year earlier. The trade surplus over the period reached $144 billion.
Meanwhile, the South Korean central bank said the global semiconductor market remains undersupplied and the current AI-driven supercycle is expected to continue for some time, dismissing investors' concerns that the chip cycle has already peaked.
"While semiconductor demand has surged significantly due to investments in artificial intelligence (AI) infrastructure, the pace of supply expansion has been slow," the Bank of Korea (BOK) said in a report submitted to Rep. Park Sung-hoon, adding that the semiconductor cycle has yet to slow.
The BOK said the current chip cycle differs from previous ones because it is being driven by competitive corporate investment in anticipation of fundamental changes to the industrial ecosystem brought about by the spread of AI.
— IANS
Reader Comments
The BOK's report is reassuring - the semiconductor supercycle isn't ending soon. But as an Indian, I wonder how this affects our electronics sector. We import a lot of chips; perhaps we can negotiate better trade deals while this boom continues.
China's export surge by 88.7% is noteworthy. Despite geopolitical tensions, economic interdependence remains strong. For India, diversifying our supply chains while tapping into this growth could be smart.
$526 billion in cumulative exports already! South Korea is showing what focused industrial policy can achieve. Meanwhile, India's electronics manufacturing is growing but we're still far behind. Need to accelerate our PLI schemes and infrastructure. 🤔
The ship exports growing 75% is a huge jump! South Korea's shipbuilding sector is really strong. India has potential too with our coastline and shipyards, but we need more modernization and global partnerships.
Interesting how auto exports only grew 5.7% - relatively modest. With EV transition happening globally, South Korea and India both need to stay competitive. We need more investment in battery tech and charging infrastructure. ⚡
The AI-driven semiconductor supercycle is a double-edged sword.
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